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What is the Kelly Criterion?

The Kelly Criterion is a formula used to determine the optimal size of a series of bets to maximize the logarithmic growth of wealth. It helps bettors manage risk while aiming for long-term growth.

How to Use the Kelly Criterion Calculator

1. Enter the Odds: Input the odds for the bet. You can use any format:
   • Fractional (e.g., 1/2)
   • Decimal (e.g., 2.50)
   • American (e.g., +150)
2. Enter the Probability: Input the probability of winning the bet as a percentage.
3. Enter the Bankroll: Input the total amount of money available for betting.

Example Scenario

Suppose you have fractional odds of 2/1, a probability of 33.33%, and a bankroll of $1000. Enter these values into the respective fields. The calculator will display the recommended bet size based on the Kelly Criterion formula.

Tips and Tricks

• Use the Kelly Criterion to manage your bankroll and make more informed betting decisions.
• Adjust the Kelly fraction if you want to be more conservative (e.g., half Kelly, quarter Kelly).

Frequently Asked Questions

What is a good Kelly fraction to use?

The full Kelly fraction maximizes long-term growth but can be volatile. Many bettors use a half Kelly or quarter Kelly to reduce risk.

Can the Kelly Criterion guarantee a profit?

No, the Kelly Criterion helps manage risk and optimize bet size, but individual outcomes can still vary. It is a tool for long-term growth.